AIA Engineering Limited — Q2 FY25
AIA Engineering reported Q2 FY25 revenue of INR 1,030 crore, down ~19% YoY, with volumes of 60,330 tons vs 77,000 tons last year.
bearish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
58%Questions answered4Evaded / deflected12Questions audited
Partial answer
High priority
Why are volumes declining despite new mining liner facility? US market impact?
Asked by Bhumika Nair, DAM Capital
Acknowledged US business continues but declined to give specifics due to legal constraints.
legal constraints citedno specific volume data given
Read the exchange
Question
So just want to understand this, that is it that the conversions are taking longer? We had added actually the mining liner facility as well. So how is, at least that should have seen some growth. And if you can also comment how the US market is panning out, whether volumes are steady there or have they fallen post the ongoing litigation out there.
Kunal Shah, Executive Director
The matter, as you know, every jurisdiction takes it quite seriously, and we are only allowed to say so much on public platforms while the matter is sub judice. But our business there broadly continues as is.
Answered
High priority
Are US volumes intact?
Asked by Bhumika Nair, DAM Capital
Confirmed US volumes broadly intact without hedging.
Read the exchange
Question
Volumes there in the U.S. market are intact, and they have not seen any kind of a decline. Would that understanding be correct?
Kunal Shah, Executive Director
Yeah, yeah, yeah. Broadly, yes.
Evasive
High priority
What is the new customer conversion status?
Asked by Bhumika Nair, DAM Capital
Mentioned large opportunities but refused to share any details, citing confidentiality.
no specificsconfidentiality cited
Read the exchange
Question
So maybe if we can get some comfort around what is the kind of new customer interaction while the conversions might be happening a little slower?
Sanjay Majmudar, Chairman
I indicated that we are working on several opportunities which can sum up beyond a six-digit easily opportunity. As you know, we don't share more details. We cannot.
Answered
High priority
Will expansion be slowed given lower utilization?
Asked by Bhumika Nair, DAM Capital
Clearly stated no slowdown, gave specific CapEx and expansion numbers.
Read the exchange
Question
So in that stead, are we looking to kind of go a little slow on our expansion, given utilization levels have kind of dipped a little bit? Any thought on that to kind of slow down?
Sanjay Majmudar, Chairman
No, no, no, no. Nothing, nothing, nothing. See, our expansion will take its own pace. We are already working on a further 36,000 tons beyond 460. And this will, and CapEx plans are still INR 250-260 crores. There is no letdown.
Evasive
High priority
Have we lost any existing customers?
Asked by Priyankar Biswas, BNP Paribas
Did not directly answer whether customers were lost; instead discussed possible reasons for reduced offtake.
did not confirm or deny customer losslisted multiple possible reasons
Read the exchange
Question
So is my understanding correct that we have not lost any customers as such? It's just a cyclical thing. So there has been no existing customer loss, at least, whatever we had.
Sanjay Majmudar, Chairman
So let me correct here a little bit. What we say is that we are trying to understand the circumstances under which the offtake has reduced. Okay. So one factor could be destocking.
Answered
Medium priority
Is cheap Chinese forged steel affecting conversion?
Asked by Priyankar Biswas, BNP Paribas
Directly dismissed the impact of cheap forged steel on chrome conversion, with reasoning.
Read the exchange
Question
So there has been excess capacity, and they have been flooding the market with very cheap material at this point and supplying finance also in some of the mining joint ventures. Is it also one of the reasons that the differential between, let's say, Ferrochrome and forged has become quite high in certain places, and that's why there is a reluctance to convert?
Kunal Shah, Executive Director
I don't think that in the scheme of things, where we're saying there's a 2 million-plus market, chrome is very less present already. Even if I go from 15%-20%, there's still a 100,000, 200,000 additional chrome market. I don't think that is a material factor.
Declined
Medium priority
Which geographies are impacted?
Asked by Priyankar Biswas, BNP Paribas
Explicitly declined to share geographic details.
refused to provide granularity
Read the exchange
Question
And if you can share which geographies are impacted? Because as you said, that U.S. is not that impacted and Canada, U.S. resumed. So I'm wondering where exactly is the impact?
Kunal Shah, Executive Director
I think we will not want to get into more details. Like Sanjay Bhai explained, there are plenty of nuances here in our business, and it will be difficult to really get granular beyond this.
Evasive
Medium priority
Progress in Brazil iron ore?
Asked by Priyankar Biswas, BNP Paribas
Declined to give specifics on Brazil iron ore, only said 'nothing's changed'.
refused granularityvague reassurance
Read the exchange
Question
What about Brazil iron ore? Because we used to be quite strong, like with Vale and others. How is it looking?
Kunal Shah, Executive Director
Again, granular question. And one market and one customer may not be the whole story, right? So I think we'll just defer back to requesting not to get too granular. But nothing's changed.
Partial answer
High priority
Considering supply chain issues, any plan for plant outside India?
Asked by Chirag, ICICI Mutual Fund
Acknowledged serious board discussions but gave no concrete plan or timeline.
no decision shareddeferred
Read the exchange
Question
So just a question around, because the supply chain issue, we had seen this in COVID and now, right? At what point do we actually go back to the drawing board to think about any expansion out of India?
Sanjay Majmudar, Chairman
This is something which we at the board level are very seriously debating over the last couple of quarters. Even in today's board meeting, we had extensive discussions, some technical presentations. I will only say at this point in time that we are looking at it quite seriously.
Answered
Medium priority
Can reducing prices increase volumes?
Asked by Ashish Kejriwal, Nuvama
Clearly stated that price reduction is not the solution.
Read the exchange
Question
So my question is, do we think that if we can reduce prices or take some hit on the margins, we'll be able to increase volumes, or it will not be the case?
Kunal Shah, Executive Director
Lower pricing is not the answer. It is not a price conversation, right? I hope I explained that in that it is not we're saying I need a discount or a lower price.
Answered
High priority
Why have volumes been stagnant for six years?
Asked by Ashish Kejriwal, Nuvama
Explained volume stagnation by detailing lost and regained volumes due to anti-dumping.
Read the exchange
Question
But if you look at the numbers for the last six years, actually, our sales volume in the mining segment is more or less stagnant. So is it that we are not or we are taking much more time to convert or our customers?
Sanjay Majmudar, Chairman
You are right that volumes look stagnant. But please consider, over the last five years, we have actually lost more than 50,000 tons and then gained them through new customer acquisitions. Correct? So there was an anti-dumping scenario first starting with Brazil and Canada, then South Africa.
Answered
High priority
Can volumes double in five years?
Asked by Ashish Kejriwal, Nuvama
Gave a clear affirmative answer without hedging.
Read the exchange
Question
So sir, last question. Okay. Short term, maybe some hiccups are there. But do we envisage that in the next five years, our number can double from here?
Sanjay Majmudar, Chairman
I definitely think so.